How festive risks could leave you uninsured

Drinking and driving, leaving your home unattended, and leaving valuables visible in your car could see your insurance claims rejected this festive season, as a quarter of South Africans prepare to hit the road.

Online lender Wonga's Summer Spending Survey of more than 10,000 South Africans found that 26% plan to travel, with KwaZulu-Natal, the Eastern Cape, and Gauteng topping the list.

Although this is a time for celebration, it also brings higher risks, including increased crime levels, says Tarina Vlok, MD of Elite Risk Acceptances, a high-net-worth insurer and a subsidiary of Old Mutual Insure.

When one drink costs you everything

Beyond the increased crime risk, the festive season brings another major insurance pitfall. The non-life Insurance Division of the National Financial Ombud Scheme has already seen a surge in complaints where motor vehicle accident claims were rejected because the driver was found to be under the influence of alcohol or another intoxicating substance.

Lead Ombud Edite Teixeira-Mckinon explains that a claim against an insurer is a civil matter, not a criminal one. This means the insurer does not have to prove its case beyond reasonable doubt.

Instead, she says, it only has to show that it is more likely than not that the driver was under the influence of an intoxicating substance. Because this is a lower standard of proof, the insurer can rely on different types of evidence to justify rejecting a claim.

Some examples that insurance companies have relied upon to reject a claim include:

• Eyewitness accounts
• The location of the driver before the accident, such as at a pub where alcohol was consumed
• Vehicle tracking data and cellphone records showing that a driver was somewhere other than where they said they were
• Bank statements showing that the driver bought alcohol
• Video footage of the driver drinking alcohol
• Evidence by paramedics or doctors who treated the driver after the accident

“Even in the absence of evidence of an insured driver being under the influence of an intoxicating substance at the time of an accident, insurers often raise other policy exclusions to reject claims where it is suspected that the insured driver was under the influence of an intoxicating substance,” says Teixeira-Mckinon.

Some policies exclude cover where the insured unlawfully leaves the accident scene, which can hinder an insurer’s validation of the claim and lead to a possible rejection of the claim on this ground, Teixeira-Mckinon adds.

Another exclusion insurers rely on to reject accident claims is when the insured fails to provide true and complete information, the Ombud’s office adds.

Oswald Kuyler, head of short-term insurance at Consult by Momentum, advocates that people know what their policy exclusions are in case they need to claim. “Understanding your policy exclusions upfront ensures there are no unpleasant surprises if you need to claim,” he says.

Kuyler adds that many companies introduce temporary underwriting restrictions over December, limiting certain types of cover, adjusting waiting periods, or pausing policy amendments altogether. “This is largely due to an elevated risk environment,” he says.

Empty homes, easy targets

Ensuring that your insurance covers you is important at a time when crime increases. Elite Risk Acceptances notes that crime rates, on average, increase by an estimated 20% to 30% during December and January. House break-ins also spike, with some data showing as much as a 48% increase in December alone when homes are left empty by holidaymakers.

Vlok says that the festive season provides opportunities for criminals, and it’s important to ensure that you are fully covered. She says, for example, buying items on special can inadvertently leave you underinsured as they are worth more than what they end up being insured for.

It’s best practice to notify your insurer or broker of high-value purchases and to provide invoices. “Clients often call to say they’ve bought an expensive dining table or an engagement ring and need extra cover,” Vlok says. “That way, if there’s a break-in or theft, they’re not out of pocket.”

Tando Ngibe, senior manager at Budget Insurance, also advocates ensuring that you are adequately insured with items covered for the correct amount – and insuring portable items.

When out shopping, Vlok offers some obvious yet often overlooked advice such as to double-check your car is locked because remote jamming is a reality and put your shopping in your boot so it’s not easily visible. “If someone breaks in and the items were visible, you may have a challenging time to claim back from your insurer,” she says.

Travel risks and social media warnings

Ngibe recommends taking out travel insurance when getting on a plane to cover you in case your flight is cancelled or your luggage gets lost in transit. In 2024, airlines mishandled about 33–36 million pieces of checked luggage worldwide, or 6.3 bags per 1,000 passengers, according to SITA’s Baggage IT Insights 2025 report.

In addition to home and car insurance, liability cover can help cover costs if there’s a claim against you if, for example, someone else is injured at your home during a party, says Ngibe.

Vlok warns against oversharing online. “Avoid posting pictures of new valuables like a Rolex on Instagram and never geotag your location – criminals can use that information to track you.”

René Moonsamy, chairperson of the National Debt Counselling Association, adds a cautionary word: when spending over the holiday period, consider that annual increases on services such as insurance often happen in January.

PERSONAL FINANCE